Uber risks a backlash if it doesn't wise up

Ridesharing service Uber has a stock response to any criticism leveled at it: The knocks all stem from conventional cab companies that resent Uber taking away their fares.

After two alleged sexual assaults by Uber drivers in Chicago—and others in New York, Boston and Delhi—the company can no longer blame negative press solely on its rivals. San Francisco-based Uber needs to act like other corporations with blemished records and publicly reassure its customers that it has their best interests in mind. This means taking steps to ensure that, in this case, its drivers have been thoroughly screened.

So far, Uber has been lucky. Though company execs often come across as self-righteous and tone-deaf, it seems riders love the service's convenience and low prices so much (except for “surge pricing” during peak hours) that business hasn't suffered. Even after the recent arrests in Chicago, people seem comfortable hopping into an Uber car.

Uber is “so part of the millennial culture,” one 26-year-old rider told us the other day. “Everybody uses it.” Said another, “My sense is that if Uber is having these problems arise, it will take measures as a company to prevent these problems from happening in the future.”

As well-run companies know, though, it's smarter to take corrective steps before things erupt into a full-blown crisis. Too many more arrests, or accidents involving Uber drivers with insufficient insurance, and the public may go back to old-fashioned taxis.

Uber's response has been to add a “safety checklist” to its app, asking riders to confirm that the license plate, photo and name match the driver they requested. But this essentially shifts the burden from the company to the consumer. Not taking ownership of one's problems is a typical adolescent response. Do Mom and Dad have to step in?

On Jan. 21, Ald. Bob Fioretti introduced a resolution to the Chicago City Council that calls for hearings on the “business and employment” practices of rideshare companies. His proposal—a none-too-subtle poke at Mayor Rahm Emanuel, who is allowing Uber to operate in the city without a license—is likely to go nowhere. After all, the two are running against each other in February's mayoral election.

Still, Fioretti's motion should be a wake-up call to the guys who run Uber. The company needs to do a better job policing its operators before government imposes its own fixes.

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